Chandigarh, October 31: The ban on the use of old vehicles in Delhi-NCR is a business opportunity for used vehicle dealers in the neighbouring states of Haryana and Punjab, who expect to make money by bringing high-valued, low-priced vehicles from Delhi for resale.
Dealers say Delhi-registered old vehicles are already cheaper by 15-30% depending on the model and condition. The recent SC judgment will lead to distress sale that would enhance their profit margins significantly.
The Supreme Court yesterday prohibited plying of 15-year-old petrol and 10-year-old diesel vehicles in the NCR and directed the transport department to announce that such vehicles will be impounded if found plying.
Haryana, Punjab and Chandigarh-based dealers have already started getting queries from their counterparts based in Delhi and NCR for potential buyers. “There is an opportunity. However, we are going to entertain only those diesel and petrol vehicles which have not completed 10 years and 15 years, respectively,” Ludhiana-based Vicky Motors proprietor Vicky said, citing the no-objection certificate (NoC) issue.
The Delhi government will not issue NoCs for diesel cars having completed 10 years on the road. Similarly, in the case of petrol cars, NOCs for vehicles older than 15 years would not be issued. Without the NoCs, vehicles ownership cannot be transferred to the buyers in other states, he said. The life span of a diesel and a petrol vehicle in Chandigarh, Punjab and Haryana is 15 years, which is further extended for five years after getting clearance from the transport department.
According to dealers, old vehicle owners in Delhi and NCR are panicked even as their vehicles have one-two years more life as per the recent judgment. “The ban will lead to spate of cars crossing the Delhi border to make entry into Punjab, Haryana and Chandigarh in coming months,” said a Panipat-based used car dealer. On an average, nearly two lakh passenger vehicles are registered in Delhi annually.
“People are aware. They may not buy vehicles that have exhausted its life in Delhi. They may, however, opt for vehicles which are 8-9 years old in case of diesel and 12-14 years old in case of petrol,” an executive of Jalandhar-based Singh Car Bazaar said.
SP Singh, senior fello: and coordinator, Indian Foundation of Transport Research and Training, said earlier such vehicles used to be sold in the eastern states, but the court’s decision would open their markets in the northern states.
Source Tribune India